Last year the average price for an airline ticket was $400, but the average price dropped to $350 this year due to a decrease in the demand for flights. The accompanying table contains information on the supply of air travel.       Airfare (price per ticket) Quantity supplied (millions of sales) $0 0 $175 35 $350 70 $400 80 $575 115 $750 150   Draw the supply curve and use it to calculate producer surplus last year and producer

MACROECONOMICS
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Chapter4: Supply And Demand: An Initial Look
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Q5 Last year the average price for an airline ticket was $400, but the average price dropped to $350 this year due to a decrease in the demand for flights. The accompanying table contains information on the supply of air travel.

 

 

 

Airfare (price per ticket)

Quantity supplied (millions of sales)

$0

0

$175

35

$350

70

$400

80

$575

115

$750

150

 

Draw the supply curve and use it to calculate producer surplus last year and producer surplus this year. How did producer surplus change?  

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